News from the IPL
INTRODUCTION
This newsletter is published by The Innovation Policy Lab at the Munk School of Global Affairs, University of Toronto, and sponsored by the Ministry of Research and Innovation. The views and ideas expressed in this newsletter do not necessarily reflect the views and policies of the Ontario Government.
ANNOUNCEMENTS
Atlantic Canada Opportunities Agency requests proposals for Round II of the Atlantic Innovation Fund
Round II of the Government of Canada’s $300 million Atlantic Innovation Fund (AIF) is now underway with an official request for proposals. The announcement comes on the heels of the Government’s announcement last month of $155 million to 47 projects under Round I of the Fund. “I was very pleased with the results of Round I. They clearly demonstrate that research and development have a bright future in Atlantic Canada,” said Minister Byrne, Minister of State for ACOA. “The impact of the AIF is already quite significant in that the $155 million announced for the successful projects has resulted in the leveraging of a further $205 million from universities, research institutions, national programs such as the Canada Foundation for Innovation, and the private sector.”
Editor's Pick
Industry Clusters in Southern Arizona: 2001 Status Report
The University of Arizona Office of Economic Development
As the first of a series of reports on Southern Arizona’s high-technology industry clusters, this report establishes a broad baseline measurement of their workforce, financial activity and the inter- and intra-sectoral relationships among cluster firms. The data, which was collected through surveys and interviews with some 383 firms, reveals a wide range of interesting findings. All clusters, for example, were found to be numerically dominated by small companies, with a median of eight full-time employees and annual revenues of $1,100,000. Also, levels of joint ventures and other collaborations among firms, within or between clusters, are surprisingly low. Finally, the capacity for local technology development and absorption is indicated by the fact that one in five high-tech firms purchases research and development services and two-thirds of those companies acquire some or all of that research in Southern Arizona.
Innovation Policy
Global Strategy and the Acquisition of Local Knowledge: How MNCs Enter Regional Knowledge Clusters
M. Lorenzen and V. Mahnke, DRUID
This paper addresses two interrelated phenomena, high-tech regional knowledge clusters and globalization of R&D activities by multinational corporations (MNCs). Following a discussion of the determinants of entry modes used by MNCs that establish R&D units in regional knowledge clusters, the paper argues that the entry mode used by a MNC depends on the type of agglomeration economies the latter seeks to appropriate. Insights are given of the advantages and disadvantages of each mode with empirical support coming from a case study of 5 MNCs entering the Danish telecommunications cluster in Aalborg.
P. Mohnen (MERIT) and P. Therrien (Industry Canada)
In comparing the innovation performance of Canadian and European manufacturing firms, the authors find that Canada has a higher proportion of innovative firms but a lower share of innovative sales for their innovating firms. Overall, however, the econometric analysis indicates that a typical Canadian firm has a slightly higher share of innovative sales. Data is drawn from the Innovation Surveys of the late 1990s.
Regional Innovation & Clusters
J. Kotkin, The Wall Street Journal
In this August 15, 2002 commentary, the author argues that the logic underpinning many clusters is increasingly tenuous. When the use of advanced telecommunications makes coordination between disparate individuals and companies, even on a global level, increasingly easy, the need for high-wage economies to be rooted in localized and specialized networks, as epitomized by Wall Street, Hollywood and Silicon Valley is increasingly less important. Along with quality of life issues for high-end workers with new families, the threat of terrorism has changed the equation. “Terrorism demolishes agglomeration economies” due to the need to pay higher insurance costs and elaborate security and communication systems. As evidence, the author points to the moving of several large high-tech and finance firms away from their clusters.
Knowledge & Universities
Public knowledge, private property and the economics of high-tech consortia
M. Cassier and D. Foray CNRS, IMRI, Université Paris Dauphine
Based on case studies in the biotechnology industry, this paper examines collective inventions and the tensions they create between individual protection and data sharing. The authors identify two models of research consortia from which they analyze the balance between the composition of the group and the collective production of knowledge. The paper concludes with a discussion of policy implications.
Information Technology
C. Ferguson , The Brookings Institution
This policy brief argues that the pace of deployment and technological progress in broadband or high-speed services remains seriously inadequate in the U.S., a problem that results from the monopolistic structure, entrenched management, and political power of incumbent local exchange carriers such as BellSouth and Verizon and the cable television industry. It is worsened by major deficiencies in the policy and regulatory systems covering these industries. According to the author, failure to improve broadband performance could reduce U.S. productivity growth by 1 percent per year or more, as well as weaken public safety, military preparedness, and energy security. To this end, current and future policy options for “last mile” broadband services are discussed.
Assessing the economic impacts of ICT
K. Smith, STEP
This paper is a wide-ranging overview of issues related to the economic impacts of ICT. It discusses the broad issues of theory and method involved in thinking about a new radical technology, such as ICT, in economic change. Part of the empirical discussion also relates to the indirect use of ICT competence, one which uses Norwegian data to make a more general point about the impact of ICT. The basic argument here is that many of the analytical claims for regarding ICT as a key driver of economic growth are overstated, and that this has important policy implications.
Events
Charlottetown, 8 September 8, 2002
This four-day event, themed “Where Great Ideas are Born” will not only include IT focused industries, but will explore business possibilities in the Media/Film, Education/e-Learning, Health, and Aerospace/Energy and Food/Hospitality sectors, all sectors which are providing lots of opportunities for IT companies. Participants include buyers, sellers, and facilitators from over 30 countries.
Cities And Regions In The 21st Century
Newcastle upon Tyne, 17-18 September 2002
To mark their 25th year, the Centre for Urban and Regional Development Studies (CURDS) has organized this conference to critically examine current debates in urban and regional development studies and the prospects for cities and regions over the next quarter century. Issues to be discussed include: the way in which cities and regions shape – and are shaped by – the activities and experiences of their citizens; territorial differentiation of life chances and access to services within, and between, cities and regions; the application of theories of clusters, innovation systems and knowledge-based development to the understanding of regional dynamics and their translation into policy and the revived interest in cities as motors of their regional economies.
BayBYTEs 2002 – Rural Technology Forum: Reaping the Rewards from Working in Rural Communities 
Port Blandford, Newfoundland 23-25 September, 2002
BayBytes2002 is a national annual event that celebrates the commitment of people living and working in rural settings and promotes the technological growth of rural communities while increasing the interest in supporting rural businesses. This year’s event features four sessions including: ‘Rural Canadian Innovators’, which will profile community and business initiatives exemplifying rural innovation across Canada; ‘Circumpolar Perspectives’, which will discuss technology and innovation in the agriculture, tourism and sustainable development sectors in remote northern / circumpolar areas and ‘From New Zealand to Newfoundland and Labrador: Small Communities with Global Reach’, a session which looks at the pay-off from cluster based economic development.
Europe’s Regions Shaping the Future – the Role of Foresight
Brussels, 24 – 25 September, 2002
Involving various Commission Services, European organizations, and policy makers and experts from Member States and Candidate Countries, the conference aims at contributing to the networking of regional decision-makers, as well as foresight practitioners, promoters and stakeholders throughout Europe’s regions. The first day is dedicated to inserting regional Foresight in a broader context and presenting concrete results already achieved in this field in different European regions. The second day will actively engage both promoters and sponsors of regional foresight and, practitioners and stakeholders to develop ideas for new activities to harness the potential of Foresight to contribute to the Lisbon goals.
Seventh International S&T Indicators Conference
Karlsruhe, 25-28 September 2002
This conference, organized by The Fraunhofer ISI and the University of Karlsruhe, will look at whether appropriate indicators can clarify the debate on knowledge societies and the broad, radical conversion of modes of knowledge production that are claimed to accompany the shift. The main themes to be addressed include: trends and challenges in the development of novel, advanced S&T Indicators; validity and adequacy of S&T indicators; indicators reflecting modes of knowledge production; combination and integration of quantitative and qualitative approaches; and S&T Indicators for the assessment of policy effects.
International Conference on Quality and Innovation
Waterloo, 22-23 October, 2002
Sponsored in part by the University of Waterloo and the American the Society for Quality, this conference brings together academic researchers, government and business leaders, and professionals to discuss and promote ideas in the areas of quality and innovation. Topics include innovation management, leadership for innovation, quality management and continuous improvement, quality culture and business ethics, creativity and e-business.
CITO’s Knowledge Network Conference – Where People in Technology Converge
Ottawa, 24 October, 2002
This conference aims to further CITO’s mandate of facilitating partnerships and knowledge exchange between industry and academic members. The conference is a forum for over 200 of Ontario’s leading researchers and innovators to identify significant emerging technologies and explore the issues, opportunities and challenges they present to both the research and business communities. Among the highlights of this year’s conference: interactive research strategy sessions, research presentations by current and upcoming innovators in communications, information technology and digital media and commercialization workshops. Dinner keynote speaker will be Bill Lishman.
Knowledge And Economic And Social Change: New Challenges To Innovation Studies
Manchester, 7-9 April, 2003
The purpose of this conference is to bring together the innovation studies community to focus on the current developments in the global economy, in technologies, and in political systems that are continuing to pose new challenges to analysis. Topics include: the increasing importance of the role of knowledge in the operation of the global economy; and the qualitative change in the conditions under which knowledge is exploited to create wealth, to improve the quality of life, and to move towards a sustainable ecosystem, economy and society. The conference is organized by Advances in the Economic and Social Analysis of Technology and the Institute of Innovation Research.
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This newsletter is prepared by Jen Nelles.
Project manager is David A. Wolfe.